UNIONBANC INVESTMENT SERVICES ( Broker/Dealer ) BANK DEPOSIT SWEEP PROGRAM (BDSP SM ) DISCLOSURE DOCUMENT

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1 UNIONBANC INVESTMENT SERVICES ( Broker/Dealer ) BANK DEPOSIT SWEEP PROGRAM (BDSP SM ) DISCLOSURE DOCUMENT This section highlights certain key features of the Bank Deposit Sweep Program (also referred to as BDSP or BDSP SM ). Please read the complete Disclosure Document if you elect to participate in the BDSP. You should consult UnionBanc Investment Services or your Financial Advisor for more information. How the BDSP Works Eligibility Available Sweep Options FDIC and SIPC Protection BDSP Summary The BDSP is a core account investment vehicle used to hold your cash balance while awaiting investment. The cash balance in your Brokerage Account(s) (as defined below in Section I) will be automatically deposited or swept into interest-bearing BDSP Deposit Accounts ( Deposit Accounts ) at Union Bank ( Union Bank or Program Bank as that term may be used in other documents) that may be eligible for insurance by the Federal Deposit Insurance Corporation ( FDIC ) up to applicable limits. In order to be eligible for the BDSP, each beneficial owner of your Brokerage Accounts must be a natural person. Entities organized to make a profit, such as corporations, are not eligible for the BDSP. If you are eligible for the BDSP, you may choose to sweep the cash balances in your Brokerage Accounts to either the BDSP or the HighMark California Tax-Free Money Market Fund. Once your cash balance has been swept to Union Bank, it is referred to as your BDSP Deposit. Your BDSP Deposit at Union Bank will qualify for FDIC Insurance in the manner and to the extent more fully described herein. You need to review and understand how FDIC insurance will apply to your BDSP Deposit. Your cash balance is only eligible for FDIC insurance once it becomes a BDSP Deposit held by Union Bank. For additional information regarding FDIC coverage, please visit Your cash balance while held by UnionBanc Investment Services and/or our clearing broker, National Financial Services LLC ( NFS ) is not FDIC insured, but is covered by SIPC. This includes amounts in the cash balances placed in your Brokerage Account that have not yet been received by Union Bank or which have been swept from Union Bank back to your Brokerage Account. SIPC Page 11 Page 10 Page 6 Page 18 1

2 Rate of Return Changes to your Sweep Vehicle currently protects these funds and securities up to $500,000, including $100,000 for claims for cash. Any securities held in your Brokerage Account, including money market mutual funds (as opposed to the BDSP Deposit held by Union Bank) are investment products, and as such: (i) are not insured by the FDIC; (ii) carry no bank or government guarantees, (iii) are not deposits or obligations of Union Bank or its subsidiaries, and are not guaranteed by Union Bank; and (iv) are subject to investment risk, including possible loss of principal amount invested. For additional information regarding SIPC coverage, please visit BDSP Deposits are not covered by SIPC. The interest rate for your Deposit Accounts, as described in the Introduction to this Disclosure Document, may be obtained from your UnionBanc Investment Services Financial Advisor or at the URL specified in Appendix A. Your interest rate is based upon your BDSP Deposits in accordance with the attached Interest Rate Tiers, as determined by UnionBanc Investment Services. Over any given period, the interest rates on the BDSP Deposits may be lower than the rate of return on other core account investment vehicles which are non-fdic insured or on bank account deposits offered outside the BDSP. UnionBanc Investment Services and Union Bank do not have a duty to offer the highest rates available or rates that are comparable to money market mutual funds. By comparison, money market mutual funds generally seek to achieve the highest rate of return consistent with their investment objectives, which can be found in their prospectuses. The BDSP should not be viewed as a long-term investment option. If you desire, as part of an investment strategy or otherwise, to maintain a cash position in your account for other than a short period of time and/or are seeking the highest yields currently available in the market for your cash balances, please contact your Financial Advisor to discuss investment options that may be available outside of the BDSP that may be better suited to your goals. Circumstances may require a change to your core account investment vehicle. Generally, you will receive notification in advance of changes to your core account investment vehicle, as is reasonably practical. Beginning on or about April 15, 2009 (the Effective Page 7 Page 15 2

3 Duty to Monitor Benefits to UnionBanc Investment Services and Others Date ), for eligible Brokerage Accounts, we will offer the Bank Deposit Sweep Program ( BDSP ), in addition to the HighMark California Tax Free Money Market Fund as a core account investment vehicle option for available cash balances in your Brokerage Account. If you elect the BDSP as your core investment vehicle, available cash from securities transactions, dividend and interest payments and other activities in your Brokerage Account will be deposited through the BDSP into interest-bearing deposit accounts ( Deposit Accounts ) at Union Bank ( Union Bank or Program Bank as that term may be used in other documents). If you are eligible for the BDSP, after the Effective Date, we will no longer offer the HighMark Diversified Money Market Fund, the HighMark U.S. Government Money Market Fund, the HighMark Treasury Plus Money Market Fund or the HighMark 100% U.S. Treasury Money Market Fund as options for your core account investment vehicle. You are responsible for monitoring the total amount of deposits that you have with Union Bank in order to determine the extent of FDIC insurance coverage available to you. Depending on the amount of deposits that you have at Union Bank apart from your BDSP Deposit, you may wish to limit deposits in the BDSP. The BDSP creates financial benefits for UnionBanc Investment Services and Union Bank, our parent company, and for NFS. UnionBanc Investment Services will receive a fee from Union Bank in connection with the BDSP and a portion of these fees may be paid to your Financial Advisor. We will also pay a fee to NFS. The revenue generated by UnionBanc Investment Services may be greater than revenues generated by sweep options at other brokerage firms, and may be greater than other core account investment vehicles available to you or possible core account investment vehicles that we have used in the past or may consider using in the future. Page 11 Page 17 Contact Information Client Services (800)

4 I. INTRODUCTION UnionBanc Investment Services ( UBIS or referred to in this Document as we, our or us ) provides the ability for you to automatically sweep the cash balances awaiting investment in your brokerage account ( Brokerage Account ) into a core account investment vehicle, as that term is defined in Section II, while you decide how those funds should be invested. We are making some important changes to your core account investment vehicle. Beginning on or about April 15, 2009 (the Effective Date ), we will offer the Bank Deposit Sweep Program ( BDSP ), in addition to the HighMark California Tax Free Money Market Fund as a core account investment vehicle for available cash balances in your eligible Brokerage Account. If you elect the BDSP as your core investment vehicle, available cash from securities transactions, dividend and interest payments and other activities in your Brokerage Account will be deposited through the BDSP into interest-bearing deposit accounts ( Deposit Accounts ) at Union Bank ( Union Bank or Program Bank as that term may be used in other documents). If you are eligible for the BDSP, after the Effective Date, we will no longer offer the HighMark Diversified Money Market Fund, the HighMark U.S. Government Money Market Fund, the HighMark Treasury Plus Money Market Fund or the HighMark 100% U.S. Treasury Money Market Fund as options for your core account investment vehicle. As more fully described in this Disclosure Document, your Brokerage Account with UnionBanc Investment Services is generally protected, up to applicable limits, by the Securities Investor Protection Corporation ( SIPC ). At the time funds are deposited with Union Bank through the BDSP, your investment in the BDSP is eligible, subject to the limitations described in this Disclosure Document, to be insured, up to applicable limits, by the Federal Deposit Insurance Corporation ( FDIC ). Funds in the Deposit Accounts at Union Bank are generally eligible for deposit insurance by the FDIC up to a total amount of $100,000 principal and accrued interest per depositor in most insurable capacities (e.g., individual, joint, etc.) when aggregated with all other deposits held in the same insurable capacity at Union Bank. For example, funds in the Deposit Accounts at Union Bank held by an individual are insured up to $100,000, and funds in the Deposit Accounts at Union Bank held jointly by two or more individuals are insured up to $100,000 per joint owner, up to a maximum of $200,000 total. For IRAs and certain other self-directed retirement accounts, funds in the Deposit Accounts at Union Bank are eligible for deposit insurance up to $250,000 principal and accrued interest per depositor in the aggregate. Funds deposited in Deposit Accounts are not eligible for coverage by the SIPC. Please note: On October 3, 2008, Congress, in the Emergency Economic Stabilization Act of 2008, temporarily increased FDIC deposit insurance coverage maximum per insurable ownership capacity (the Maximum Applicable FDIC Deposit Insurance Amount ) from $100,000 to $250,000 per deposit in any bank through December 31, 2009 ( Temporary Increase ). The description of FDIC deposit insurance coverage set forth in this Disclosure Document is based upon the coverage rules prior to this Temporary Increase in coverage and the rules which will apply (unless subsequently amended) upon expiration of the Temporary Increase. There is no assurance that the Temporary Increase will be extended beyond December 31, The Maximum Applicable FDIC Deposit Insurance Amount for individual retirement accounts before October 3, 2008 was $250,000 and remains unchanged unless coverage for this insurable capacity is subsequently amended. Any deposits (including certificates of deposit) that you maintain in the same capacity directly with Union Bank or through an intermediary (such as with us or another broker), will be aggregated with deposits in your Deposit Accounts at Union Bank for purposes of the Maximum Applicable FDIC Deposit Insurance Amount. You are responsible for monitoring the total amount of deposits 4

5 that you have with Union Bank in order to determine the extent of FDIC deposit insurance coverage available to you. You should review carefully the section of the Disclosure Document titled FDIC/SIPC Coverage. In the rare instances where we are unable to place your funds at Union Bank within the BDSP, your funds will be invested in the HighMark Diversified Money Market Fund. For more complete information about the HighMark Diversified Money Market Fund, including all charges and expenses, please contact your Financial Advisor for a free prospectus. Read the prospectus carefully. You may obtain information with respect to the current yields available on the HighMark Diversified Money Market Fund specified in this Disclosure Document by accessing HighMark s website at or by contacting your Financial Advisor. Each Deposit Account constitutes a direct obligation of Union Bank and is not directly or indirectly an obligation of us or National Financial Services LLC ( NFS ). Neither we nor NFS guarantee in any way the financial condition of Union Bank or the accuracy of any publicly available financial information concerning Union Bank. You can obtain publicly available financial information concerning Union Bank at or by contacting the FDIC Public Information Center by mail at L. William Seidman Center, Virginia Square, 3501 North Fairfax Drive, Arlington, Virginia or by phone at You will not have a direct account relationship with Union Bank. NFS, as your agent and custodian, will establish the Deposit Accounts for you at Union Bank and make deposits to and withdrawals from the Deposit Accounts. We will receive a fee from Union Bank The amount of the fee paid to us will effect the interest rate paid on the Deposit Accounts. You should review carefully the section of the Disclosure Document titled Information About Your Relationship with UnionBanc Investment Services and Union Bank. As discussed herein, interest rates on the Deposit Accounts will be tiered and will vary based upon prevailing economic and business conditions. Please refer to the information below Core Account Investment Vehicle Options and Rates of Return and Appendix A of the Disclosure Document for more information on the interest rate tiers. Union Bank does not have a duty to offer the highest rates available or rates that are comparable to money market mutual funds. By comparison, money market mutual funds generally seek to achieve the highest rate of return consistent with their investment objectives, which can be found in their prospectuses. The information in this Disclosure Document applies, unless otherwise indicated, to each eligible Brokerage Account for which you are an owner, whether as an individual, joint tenant, trustee, executor, custodian or in any other capacity. Customers Affected by the Changes in Our Core Account Investment Options All Brokerage Accounts that are eligible for the BDSP will be subject to the information discussed in this Disclosure Document with respect to your election into the BDSP as your core account investment vehicle option. Under federal law, the Deposit Accounts may not be held by business entities, including corporations, partnerships and limited liability companies, or by certain not-for-profit organizations. Please refer to the BDSP Eligibility section of this Disclosure Document or your Financial Advisor for information concerning eligibility for the Deposit Accounts. Your Financial Advisor can provide you with more information concerning the accounts and programs to which the changes in our core account investment vehicle options do and do not apply. 5

6 Core account investment vehicle options and Rates of Return As of March 2, 2009, rates on the available core account investment vehicles were as follows: Interest Rate APY HighMark California Tax Free Money Market Fund..51%.51% Bank Deposit Sweep Program Interest Deposit Account Balance Range Rate 1 APY <50k.25%.25% 50k - 100k.30%.30% 100k - 250k.40%.40% 250k - 500k.75%.45% 500k - 1mm.90%.90% > 1mm 1.00% 1.00% As of March 2, 2009, rates on the discontinued core account investment vehicles were as follows: Interest Rate APY HighMark Diversified Money Market Fund.75%.75% HighMark U.S. Government Money Market Fund.09%.09% HighMark Treasury Plus Money Market Fund.08%.08% HighMark 100% U.S. Treasury Money Market Fund.02%.02 Current Annual Percentage Yields (APY) on the BDSP may be obtained from your Financial Advisor or on our website at Current yields on the HighMark Money Market Funds may be obtained from your Financial Advisor or on the HighMark Funds website at The BDSP interest rate and APYs are based upon commitments from Union Bank with respect to interest rates on the Deposit Accounts, as of April 15, The interest rate will vary and may be higher or lower on the Effective Date. You should review carefully the section of the Disclosure Document titled Interest and Appendix A for additional information. Discontinued Core Account Investment Vehicle Options After the Effective Date, if you and your Brokerage Account are eligible for the BDSP, we will no longer accept new deposits for your core account into the HighMark Diversified Money Market Fund, the HighMark U.S. Government Money Market Fund, the HighMark Treasury Plus Money Market Fund or the HighMark 100% U.S. Treasury Money Market Fund. If you and your Brokerage Account are eligible for the BDSP, unless you respond with an election to sweep the cash balances in your Brokerage 1 Past performance is not a guarantee of future results. Annual percentage yield and interest rate will vary. 6

7 Accounts to either the BDSP or the HighMark California Tax-Free Money Market Fund, then, by default, new cash balances in your Brokerage Account shall sweep into the BDSP. If you have funds in one of the above discontinued core account investment vehicles on the Effective Date, your existing funds will not be transferred to one of the available core account investment vehicles, unless, at any time, you provide us with instructions to do so. However, debits in your Brokerage Account for such items as securities transactions, checks, debit cards and other charges will be satisfied from funds remaining in the discontinued core account investment vehicle after the Effective Date until all funds have been depleted. After that, debits in your Brokerage Account will be satisfied from funds in your Deposit Accounts as described below. Alternatives to the Deposit Accounts as a Core Account Investment Vehicle Option UnionBanc Investment Services is not obligated to offer you any core account investment vehicle options (except for retirement accounts) or to make available to you bank deposit sweep program investments that offer a rate of return that is equal to or greater than other comparable investments. The two core account investment vehicle choices for your eligible Brokerage Account are the the BDSP or the HighMark California Tax-Free Money Market Fund. Investments in money market mutual funds such as the HighMark California Tax-Free Money Market Fund and the HighMark Diversified Money Market Fund ( Money Market Mutual Funds ) are not guaranteed or insured by the FDIC or any other government agency. Although Money Market Mutual Funds seek to preserve a net asset value of $1.00 per share, there is no guarantee that this will occur and it is possible to lose money by investing in a Money Market Mutual Fund, including the possible loss of principal. Please read the prospectus carefully. Carefully consider the Money Market Mutual Fund s investment objectives, risks and charges and expenses before investing. This and other information can be found in the Money Market Mutual Fund s prospectus, which may be obtained by calling (800) , by contacting your Financial Advisor, or by visiting Please read the prospectus carefully before investing. For non-retirement accounts, you may elect not to have available cash swept into a core account investment vehicle. If you make this election, your Brokerage Account will not have a sweep investment feature. This means your available cash will not be invested and therefore will not earn interest unless you give your Financial Advisor direction to invest a specific amount of your funds in direct investments available through us. No Impact on Your Annual Brokerage Account Fees The changes in our core account investment vehicle options discussed above and within this Disclosure Document will not affect your Brokerage Account fees. No Impact on the Timing of Sweep Generally, the frequency and timing of deposits into your Deposit Accounts as a core account investment vehicle will be the same as under the Money Market Mutual Fund core account investment vehicle. Access to Funds in the Deposit Accounts 7

8 As required by federal banking regulations, Union Bank has reserved the right to require seven (7) calendar days prior notice before permitting a withdrawal of any BDSP Deposits. So long as this right is not exercised, your ability to access funds, including the ability to write checks against your Brokerage Account, should not be impacted. Your interest in Deposit Accounts is not transferable. Notwithstanding the foregoing, you will remain obligated for all obligations arising from your Brokerage Account, including, but not limited to, margin balances, settlement of transactions, checks, wires, and debit card purchases. Tax Information For most clients, with non-retirement Brokerage Account types, interest earned from the Deposit Accounts will be taxed as ordinary income in the year it is received. In those cases, a Form 1099 will be sent to you by NFS each year showing the amount of interest income you have earned on deposits in your Deposit Accounts. You should consult with your tax adviser about how the the BDSP affects you. 8

9 II. DETAILS Your Brokerage Account held with us and NFS has a core account that is used for settling securities transactions and holding credit balances. We may at any time provide you with access to a variety of different cash sweep vehicles, including money market funds and bank deposit accounts (each a core account investment vehicle ), that may be used to hold a cash balance that is awaiting reinvestment. The BDSP is one such core account investment vehicle. This Disclosure Document contains key information about the BDSP which is offered by us in conjunction with NFS, a New York Stock Exchange ( NYSE ) member who we have engaged to provide custody and clearing services to us. The terms account owner, you and your refer to the owner indicated on the account application. For joint accounts, these terms refer to all owners, collectively and individually. For trust accounts, these terms refer both to the entity and to all account owners. Additional terms, conditions, and disclosures applicable to your account held with us are included in other documents, including your account application, account agreement, and applicable privacy notice ( Other Agreements ) and are hereby incorporated by reference into this Disclosure Document. In the event of a conflict between the terms of this Disclosure Document and the Other Agreements, the Disclosure Document will control. Please review these Other Agreements for important information governing your account. A. BDSP Eligibility Eligibility for the BDSP is based on the account type and ownership of your Brokerage Account. In order to be eligible for the BDSP, each beneficial owner must be a natural person (each such beneficial owner and beneficiary, an Eligible Person ). Eligibility is subject to the limitations described herein and as determined by NFS. The BDSP is available to Eligible Persons, acting for themselves or through an agent or fiduciary, whether having a single account or joint account (so long as all beneficial owners are natural persons), trust accounts (so long as all beneficial owners and beneficiaries of the trust accounts are natural persons), and sole proprietorships (so long as they are not incorporated or in company form). The following custodial individual retirement accounts are also eligible for the BDSP if each beneficial owner is an Eligible Person: Union Bank Custodial Investment Services IRA, Union Bank Custodial Investment Services Roth IRA, Union Bank Custodial Investment Services SEP-IRA and Union Bank Custodial Investment Services SIMPLE IRA, and if applicable (based on eligibility of the Brokerage Account and its owners and beneficiaries), the Premiere Select Traditional IRA, Premiere Select Roth IRA, Premiere Select SIMPLE IRA, Premeire Select SEP-IRA, Premiere Select IRA-BDA, and Premiere Select Roth IRA-BDA. Brokerage Accounts beneficially owned by entities organized to make a profit, such as corporations, limited liability companies, partnerships, limited liability partnerships, associations, business trusts, and other organizations (other than sole proprietorships which are not incorporated or in company form) are not eligible for the BDSP. Managed accounts (such as those managed in the Managed Account Solutions Program) for which you have given full discretionary authority to a third-party investment manager to invest, reinvest and otherwise deal with the assets in your account are not eligible for the BDSP. To the extent that you change any beneficial owner or beneficiary on your Brokerage Account, you are responsible for determining whether each beneficial owner or beneficiary of your Brokerage Account continues to qualify as an Eligible Person. If we or NFS determine that your Brokerage Account is not eligible or the BDSP eligibility requirements change, we may change your core account investment vehicle, as that term is defined in Brokerage Account documentation, or any amendments thereto, including but not limited to the applicable Customer Agreement, from the 9

10 BDSP to an alternative core account investment vehicle made available by UnionBanc Investment Services and NFS, which may not be an FDIC-insured investment. B. How the BDSP Works Sweep to Union Bank Through the BDSP, cash balances in your Brokerage Account (resulting from sales of securities, deposits, dividend and interest payments and other activities) will be automatically deposited or swept into Deposit Accounts at Union Bank, an FDIC-insured depository institution. Once your cash balance has been swept to Union Bank, it is referred to as your BDSP Deposit. Please note that your ability to access the money held at Union Bank may be limited, as more fully described herein. Funds swept into the Deposit Accounts at Union Bank in excess of the Maximum Applicable FDIC Deposit Insurance Amount will not be eligible for FDIC insurance above the Maximum Applicable FDIC Deposit Insurance Amount. You are responsible for monitoring the total amount and insurable capacity of deposits, both as part of and outside of the BDSP that you have at Union Bank for the purpose of determining the FDIC insurance coverage for those deposits. BDSP Limitations The amount of your cash balances that are swept into the Deposit Accounts may need to be limited if Union Bank stops accepting deposits, becomes ineligible for the BDSP as described in this Disclosure Document, or for other exceptional circumstances. You will receive notification in advance of Union Bank being removed from the BDSP, and if advance notice is not practical due to the circumstances, you will be notified as soon as is reasonably practical. Please consult the following sections for further important information, as such action may affect the amount of your cash balances that are covered by FDIC insurance. C. FDIC Insurance Coverage In General The Deposit Accounts, including principal and accrued interest, are insured by the FDIC, an independent agency of the U.S. Government, to the Maximum Applicable Deposit Insurance Amount for all deposits held in the same insurable capacity at Union Bank. Your funds become eligible for deposit insurance immediately upon placement into the Deposit Accounts at Union Bank. Generally, any accounts or deposits that you may maintain directly with Union Bank or through any other intermediary, in the same insurable capacity in which the Deposit Accounts are maintained would be aggregated with the Deposit Accounts for purposes of the Maximum Applicable Deposit Insurance Amount. You are responsible for monitoring the total amount of deposits that you hold with Union Bank directly or through an intermediary, in order to determine the extent of deposit insurance coverage available to you on your deposits, including the Deposit Accounts. We and NFS are not responsible for any insured or uninsured portion of the Deposit Accounts or any other deposits. See FDIC/ SIPC Coverage below for more detailed information on insurance coverage of Deposit Accounts and Brokerage Accounts. 10

11 D. Alternatives to the BDSP To the extent that an alternative core account investment vehicle is offered to the BDSP, such as the Highmark California Tax-Free Money Market Fund, and you do not select one of those core account investment vehicles when you open your account, or you select an ineligible core account investment vehicle, your core account investment vehicle will be as determined by UnionBanc Investment Services. If a money market mutual fund option exists, you may contact your Financial Advisor with respect to current yields, as well as for a free prospectus. If your Brokerage Account is a non-retirement Brokerage Account and you elect not to participate in the BDSP and your available cash is not invested in a money market fund, accruing cash balances may not earn a rate of return prior to direct investment. If you wish to specify a different core account investment vehicle, if available for your account type, you may do so at any time by contacting us. In such case, existing balances in your prior core account investment vehicle will be automatically transferred to the new core account investment vehicle you select. III. UNION BANK A. General Information About Union Bank Your funds will be deposited in accordance with the terms and conditions in this Disclosure Document. To the extent your deposits exceed the Maximum Applicable FDIC Deposit Insurance Amount, these excess funds are ineligible for FDIC insurance. You are responsible for monitoring the total amount of deposits that you have at Union Bank for purposes of reviewing deposits which may be eligible for insurance by the FDIC. Union Bank, we and NFS do not have any duty to monitor the core account investment vehicle for your account or make recommendations about, or changes to, the BDSP that might be beneficial to you. Deposits at Union Bank are eligible for FDIC insurance coverage, except for amounts deposited in excess of the Maximum Applicable FDIC Deposit Insurance Amount which will not be insured by the FDIC and will not be protected by SIPC. The amount of FDIC insurance in Union Bank may be limited pursuant to the limitations explained in this Disclosure Document. In any event, all deposits in the BDSP are subject to all applicable FDIC qualification requirements and to the BDSP limitations described in this Disclosure Document. B. Deposit Accounts Your BDSP Deposits will be deposited in two linked bank accounts at Union Bank: (1) an interestbearing savings deposit account (commonly referred to as a Money Market Deposit Account or MMDA account) and (2) an interest-bearing transaction account (commonly referred to as a Negotiable Order of Withdrawal or NOW account). You will receive the same interest rate on the funds in your MMDA account and in your NOW account at Union Bank Your Brokerage Account statement will reflect the combined balances of the MMDA account and the NOW account at Union Bank. Your BDSP Deposit will be combined with the BDSP Deposits of other customers of UnionBanc Investment Services and/or NFS that participate in the BDSP. For ease of reference, however, the portion of your BDSP Deposit that is allocated to the NOW account is referred to as your NOW account and the portion of your BDSP Deposit that is allocated to the MMDA account is referred to as your MMDA account. 11

12 Available cash balances are deposited in your MMDA account at the Bank as set forth above. From time to time, part of such deposits may be transferred to your NOW account to establish and/or maintain a threshold amount which may differ among customers. All withdrawals will be made from the NOW account at Union Bank as necessary to satisfy debits in your Brokerage Account (securities purchases, checking, debit card, etc.), funds will automatically be transferred from the MMDA account to the related NOW account at Union Bank If there are insufficient funds in the Deposit Accounts to satisfy a debit, NFS will withdraw funds from other available sources as described in this Disclosure Document or in your account opening paperwork. Federal banking regulations limit the transfers from an MMDA account to a total of six (6) during a monthly statement cycle. At any point during a month in which transfers from an MMDA account at Union Bank have reached the applicable limit, all funds will be transferred from that MMDA account to the linked NOW account at Union Bank For the remainder of the month, all deposits for Union Bank will be made to the NOW account. At the beginning of the next month, an amount of funds on deposit in the NOW account less any applicable threshold amount will be automatically transferred back to the MMDA account. Due to the linking of the NOW and MMDA accounts as described above, the federal banking limits on MMDA account transfers will not effectively limit the number of withdrawals you can make from funds on deposit at Union Bank. The cash balance in your Brokerage Account will be automatically swept from your Brokerage Account into your Deposit Accounts on the business day following the day your Brokerage Account reflects a cash balance. For purposes of this BDSP, business day generally means a day on which Union Bank is open for business. Available cash balances will not begin to earn interest or be eligible for FDIC insurance until swept into the Deposit Accounts at Union Bank As stated above, to the extent your deposits outside of the BDSP in combination with BDSP Deposits exceed the Maximum Applicable FDIC Deposit Insurance Amount at Union Bank the amounts above such limits will NOT be eligible for FDIC insurance protection nor will they be protected by SIPC. Although your funds generally will be deposited in Deposit Accounts at Union Bank, Union Bank may be unable to accept your funds on a particular day or Union Bank may be removed from the BDSP and not replaced. If advance notice is not practical due to the circumstances, you will be notified as soon as is reasonably practical. You should also regularly check the URL specified in Appendix A for changes to the BDSP. If Union Bank is unable to accept your funds on a day you have funds to deposit in the BDSP, your funds will be deposited in the HighMark Diversified Money Market Fund and any such funds will NOT be eligible for FDIC insurance protection, but will be eligible for SIPC coverage. C. Withdrawals Access to Your BDSP Deposits When funds are needed to cover transactions in your Brokerage Account, we will use on the same day the debit is applied the following sources, in the order listed, to satisfy the debit: (i) available cash balances, including money added to your Brokerage Account (such as checks, interest, or transaction proceeds) and not yet moved to the Deposit Accounts; (ii) any remaining balance in your previous core account investment vehicle; (iii) money in your BDSP Deposit Accounts; and (iv) if you have a margin account, any margin credit available. Withdrawals from your Deposit Accounts will normally be made on the business day following transactions in your Brokerage Account; however, your Brokerage Account is credited on the day of the debit. This process might result in you having an obligation to make us or NFS whole for the sum of the 12

13 debits in your Brokerage Account if there is a problem withdrawing funds from your Deposit Accounts or you otherwise fail to sufficiently fund your Brokerage Account for the full amount of your daily debits. Please review your applicable Brokerage Account customer agreement for important information regarding any unsatisfied obligations owed to us and/or NFS. You may access your cash balance only through your Brokerage Account. You cannot access or withdraw the money on deposit in the BDSP Deposit Accounts by contacting Union Bank directly. NFS will automatically withdraw funds from the Deposit Accounts (up to the amount of your BDSP Deposit) and deposit them back to your Brokerage Account in order to satisfy any obligation you have to us or NFS or to settle a securities transaction or other debit transaction, including, but not limited to, checks, wires, debit card purchases or margin balances in any account you have with us or NFS. Your BDSP Deposit is also subject to legal process such as a levy or a garnishment delivered to us or NFS to the same extent as if those funds were in your Brokerage Account. As required by federal banking regulations, Union Bank has reserved the right to require seven (7) calendar days prior notice before permitting a withdrawal of any BDSP Deposits. So long as this right is not exercised, your ability to access funds, including the ability to write checks against your account, should not be impacted. Your interest in the Deposit Accounts is not transferable. Notwithstanding the foregoing, you will remain obligated for all obligations arising from your account, including, but not limited to, margin balances, settlement of transactions, checks, wires, and debit card purchases. IV. INTEREST A. Interest Rates The interest rate for your Deposit Accounts may be obtained from your UnionBanc Investment Services Financial Advisor or at the URL specified in Appendix A. Interest on your BDSP Deposit is accrued daily, compounded monthly and is reflected on your Brokerage Account statement as of the last business day of the statement period. Interest on your BDSP Deposit begins to accrue on the business day those funds are received by Union Bank, which will typically be the business day following the day your Brokerage Account reflects a cash balance. Generally, interest will accrue to your Deposit Accounts through the business day preceding the date of withdrawal from your Deposit Accounts at Union Bank (which will typically be the day on which a withdrawal of funds is made from your Brokerage Account). Non-business days occurring between Brokerage Account withdrawal and Deposit Account withdrawal and deposit with Union Bank will be included in the interest accrual. Your interest rate is based upon your BDSP Deposit in accordance with the attached Interest Rate Tiers, as determined by UnionBanc Investment Services (described below in Appendix A). The rate of interest paid is tiered based on the value of your BDSP Deposit ( Eligible Assets ). Eligible Assets are currently evaluated on a daily basis. Interest rates, evaluation period and Eligible Assets may change at any time and may be based on a number of factors including general economic, market and business conditions. You will receive notification in advance of any changes to the Interest Rate Tiers and if advance notice is not practical due to the circumstances, you will be notified as soon as is reasonably practical. Customers with Eligible Assets of a greater value generally will receive higher interest rates on their BDSP Deposit Accounts than customers with Eligible Assets of a lower value. Interest on your BDSP Deposit Accounts will be paid by Union Bank. Over any given period, the interest rates on the BDSP Deposit Accounts may be lower than the rate of return on other core account investment vehicles which are non-fdic insured or on bank account deposits offered outside of the BDSP. Union Bank does not have a duty to offer the highest rates available 13

14 or rates that are comparable to Money Market Mutual Funds. By comparison, Money Market Mutual Funds generally seek to achieve the highest rate of return consistent with their investment objectives, which can be found in their prospectuses. The BDSP should not be viewed as a long-term investment option. If you desire, as part of an investment strategy or otherwise, to maintain a cash position in your account for other than a short period of time and/or are seeking the highest yields currently available in the market for your cash balances, please contact your Financial Advisor to discuss investment options that may be available outside of the BDSP that may be better suited to your financial goals. You should compare the terms, interest rates, required minimum amounts, and other features of the BDSP with other accounts and alternative investments, prior to investing.. B. Interest Credited to Your Deposit Account While interest will generally be credited to your Deposit Accounts at month-end, intra-month interest credits to your Deposit Accounts may occur. Intra-month interest credits may occur in the following instances: (i) where you close your account intra-month, (ii) where you change the core account investment vehicle from the BDSP to a different eligible core account investment vehicle option intramonthor (iii) where there has been a change to Union Bank intra-month. Intra-month interest credits will appear on your Brokerage Account statement to reflect interest accrued at Union Bank through such intramonth event. Adjustments made to your Brokerage Account which can be caused by transactions entered for a prior date (e.g., a fee reimbursement or a debit adjustment) may result in an interest credit or debit to your Deposit Accounts. The interest rate used to credit or debit adjustments may not be made at the current rate, but should reflect interest rates applicable at the time of the event. Interest rates applied to credit adjustments are not expected to be lower but, depending upon the interest rate tiering schedule, could be less than those applied to your balances on the day in which the credit adjustment is made. Interest amounts on adjustments are rounded to the penny and for interest amounts of less than half a cent you will receive no interest and you also will not be debited. V. CHANGES A. Limitations on Deposits The amount of your cash balance that is swept into the Deposit Accounts may need to be limited if Union Bank cannot accept deposits due to exceptional circumstances. In such an event, funds not swept into the BDSP Deposit Accounts will be invested in the HighMark Diversified Money Market Fund, the core account investment vehicle chosen by us, as identified in the Introduction section of this Disclosure Document, as amended from time to time. If advance notice is not practical due to the circumstances, you will be notified as soon as is reasonably practical. Please see the Changes to Your Core Account Investment Vehicle below for additional information. B. Changes to Your Core Account Investment Vehicle From time to time, circumstances, such as those described in this Disclosure Document, may require that we or NFS modify the BDSP, which may result in us changing the core account investment vehicle for your Brokerage Account. If we make any change, there is no guarantee that such change will provide an equal or greater rate of return to you during any given period, and the rate of return may be lower. Generally, you will receive notification in advance of any such change. If advance notice of a BDSP modification is not practical due to the circumstances, you will be notified as soon as is reasonably practical of any change in the BDSP or any change to the core account investment vehicle for your Brokerage Account. Unless you object within the time period specified in the notice, we will transfer the balances from the BDSP into a new core account investment vehicle. If you object to the core account 14

15 investment vehicle that we select, or, if at any time the BDSP does not meet your needs, including, but not limited to, due to any change in the BDSP, your Financial Advisor can assist you in finding an alternative investment vehicle or in transferring your account to another provider or another program. If we need to change your core account investment vehicle under the circumstances set forth in this Disclosure Document, or for other circumstances as may be necessary, the core account investment vehicle that we choose for you may receive a lower effective rate of return than is available on funds swept into the Deposit Accounts. We will notify you, as soon as is reasonably practical, if your cash balance is deposited into a core account investment vehicle other than the BDSP and additionally, if you will receive a lower effective rate of return. C. Notices All notices described in this Disclosure Document may be made by means of a letter, an entry on or insert with your Brokerage Account statement, or an entry on a trade confirmation or by electronic or other form of notification if available to you by us which may include but is not limited to, electronic alerts or . VI. ACCOUNT INFORMATION A. Statements and Confirmations The statement for your Brokerage Account will: (i) indicate your beginning and ending balance in your Deposit Accounts at Union Bank as of the last business day of each monthly statement period (except if your Brokerage Account was established on the last business day of a month, your statement will not include BDSP detail); (ii) detail sweeps to and from the Deposit Accounts during the statement period; and (iii) reflect interest credited to your Brokerage Account. This information is provided in lieu of separate confirmations for each sweep to and from the Deposit Accounts during the statement period. Transfers between your MMDA accounts and NOW accounts will not be reflected in your Brokerage Account statements. Because you are responsible for monitoring the total amount of your deposits at Union Bank (including any BDSP Deposit held at Union Bank and all deposits you may make at Union Bank outside the BDSP), in order to determine the extent of FDIC insurance coverage available, you should carefully review your statements to determine any impact on your deposit insurance coverage. B. Tax Information For most clients, with non-retirement Brokerage Account types, interest earned on deposits in the Deposit Accounts will be taxed as ordinary income in the year it is received. In those cases, a Form 1099 will be sent to you by NFS each year showing the amount of aggregate interest income you have earned on deposits in your Deposit Accounts. You should consult with your tax advisor about how the BDSP affects you. VII. INFORMATION ABOUT YOUR RELATIONSHIP WITH UNIONBANC INVESTMENT SERVICES, UNION BANK AND HIGHMARK FUNDS A. Relationship with UnionBanc Investment Services and Union Bank As your agent, NFS is establishing the Deposit Accounts at Union Bank and depositing funds into the Deposit Accounts, withdrawing funds from Deposit Accounts and transferring funds between Deposit Accounts. Deposit Account ownership will be evidenced by a book entry on the account records of 15

16 Union Bank showing the Deposit Account as an agency account held by NFS for the benefit of you and other customers and by records maintained by NFS as your agent and custodian. No evidence of ownership, such as a passbook or certificate, will be issued to you. Your Brokerage Account statements will reflect the balances in your Deposit Accounts at Union Bank. You should retain the Brokerage Account statements for your records. Once established on your behalf, the Deposit Accounts are obligations solely of Union Bank and not UnionBanc Investment Services, NFS or any other entity. You may at any time obtain information about your Deposit Accounts by contacting your Financial Advisor. If either you or we terminate your use of the BDSP as a core account investment vehicle or Union Bank ceases to participate in the BDSP, you may establish a direct depository relationship with Union Bank subject to its rules with respect to maintaining deposit accounts. ESTABLISHING THE DEPOSIT ACCOUNTS DIRECTLY IN YOUR NAME AT UNION BANK WILL SEPARATE THE DEPOSIT ACCOUNTS FROM YOUR BROKERAGE ACCOUNT. IF YOU ESTABLISH A DIRECT DEPOSITORY RELATIONSHIP WITH UNION BANK, THE DEPOSIT ACCOUNTS WILL NO LONGER BE REFLECTED IN YOUR BROKERAGE ACCOUNT STATEMENT AND WE WILL HAVE NO FURTHER RESPONSIBILITY CONCERNING THE DEPOSIT ACCOUNTS. B. Benefits to UnionBanc Investment Services and Others The BDSP will create financial benefits for us and Union Bank (our parent), and NFS. We will receive a fee from Union Bank for services provided in connection with the BDSP (equal to a percentage of all participants average daily deposits at Union Bank). Amounts will vary, but in no event will be more than 1.5% on an annualized basis as applied across all Deposit Accounts. In our discretion, we may reduce our fee and may vary the amount of the reductions between clients. The amount of fee received will affect the interest rate paid by Union Bank on your Deposit Accounts. A portion of these fees may be paid to your Financial Advisor. We will also pay a fee to NFS. We reserve the right to modify the fees we receive from Union Bank. From time to time, if the fee increases, you will receive notification of any such change. In addition to our fee, other service providers with respect to the BDSP will receive fees from Union Bank (collectively, with the fees paid to us and/or NFS, BDSP Fees ). In addition to the BDSP Fees referenced above, your Brokerage Account generally may be charged additional fees that apply to securities accounts maintained by us. Applicable law governing retirement accounts, such as qualified plans under the Employee Retirement Income Security Act of 1974 and individual retirement accounts under the Internal Revenue Code, necessitates that interest rates paid by Union Bank for deposits in the Deposit Accounts, our fee, and other service fees were negotiated at arm s length, are believed to be fair and reasonable, and are designed to approximate value for the services involved and in the context of customers Eligible Assets. Union Bank uses BDSP Deposits to fund current and new lending and for investment activities. Union Bank earns net income from the difference between the interest they pay on BDSP Deposits and the fees paid to us and the income they earn on loans, investments and other assets. As noted above, Union Bank may pay rates of interest on BDSP Deposits that are lower than prevailing market interest rates that may have been paid on accounts otherwise opened directly with Union Bank. Union Bank does not have a duty to provide the highest rates available and may instead seek to pay a lower rate. Lower rates may be more financially beneficial to Union Bank There is no necessary linkage between bank rates of interest and the highest rates available in the market, including any Money Market Mutual Fund rates. By comparison, a 16

17 Money Market Mutual Fund generally seeks to achieve the highest rate of return (less fees and expenses) consistent with the fund s investment objective, which can be found in the fund s prospectus. The revenue generated by us may be greater than revenues generated by sweep options at other brokerage firms, and may be greater than other core account investment vehicles currently available to you or core account investment vehicles that we have used in the past or may consider using in the future. In addition, we will make compensation payments to NFS, our clearing agent, for record keeping and other services with respect to amounts invested in the BDSP, which will be no more than 70 basis points. NFS may receive more revenue with respect to amounts in the BDSP than with respect to other sweep products. As a result of the fees and benefits described above, the BDSP may be more profitable to us than other available sweep options, if any. We and/or NFS may also benefit from the possession and temporary investment of cash balances prior to the deposit of such balances in the BDSP. C. Relationship with Highmark Funds HighMark Capital Management, Inc., a registered investment advisor, is a subsidiary of Union Bank and serves as investment advisor for HighMark Funds. Union Bank provides certain services to the HighMark Funds and is compensated for these services. For this and additional other information about HighMark Funds, or other mutual funds available through UnionBanc Investment Services LLC, a wholly-owned subsidiary of Union Bank, please request a prospectus and read it carefully before you invest. D. Sharing of Your Information with Union Bank NFS may provide Union Bank with confidential information related to you and any individual authorized by you to trade in your Brokerage Account used in the BDSP ( Authorized Individual ). If provided, the information could consist of the name, address (including city, state, postal code, and, if applicable, foreign country), date of birth, either social security number or taxpayer identification number and any other information as necessary or requested by Union Bank. E. Questions/Comments Regarding this BDSP You may contact your Financial Advisor or access the URL specified in Appendix A to determine the current interest rate on the Deposit Accounts for each Interest Rate Tier. For the current yields for Money Market Mutual Funds, please contact your Financial Advisor or call (800) The material in this Disclosure Document is intended for informational purposes. If there is any conflict between the descriptions in this Disclosure Document and the terms of your applicable Brokerage Account customer agreement, this Disclosure Document will control. 17

18 VIII. FDIC/SIPC Coverage 2 A. Deposit Insurance Important Development On October 3, 2008, Congress in the Emergency Economic Stabilization Act of 2008, temporarily increased FDIC deposit insurance coverage per insurable ownership capacity (the Maximum Applicable FDIC Deposit Insurance Amount ) from $100,000 to $250,000 per deposit in any bank through December 31, The description of FDIC deposit insurance coverage set forth below is based upon the coverage rules prior to this Temporary Increase in coverage and the rules which will apply (unless subsequently amended) upon expiration of the temporary increase. During effectiveness of the Temporary Increase, you should read the following description by substituting $250,000 for $100,000 in places describing the applicable coverage limit as $100,000. The Maximum Applicable FDIC Deposit Insurance Amount for individual retirement accounts before October 3, 2008 was $250,000 and remains unchanged unless coverage for this insurable capacity is subsequently amended. The Deposit Accounts are eligible for insurance by the FDIC, an independent agency of the U.S. government, up to a maximum amount of $100,000 (including principal and accrued interest) when aggregated with all other deposits held by you in the same insurable capacity at Union Bank (e.g., individual, joint, etc.) and $250,000 for certain individual retirement accounts, in each case such FDIC insurance may be insured for such greater amount as may be approved by the FDIC from time to time. Your funds become eligible for deposit insurance immediately when Union Bank accepts your deposits into Deposit Accounts. To the extent that your deposits at Union Bank in one ownership capacity, either through the BDSP or otherwise, exceed the FDIC insurance limits applicable to that ownership capacity, deposits in excess of the limits will not be insured. In the event Union Bank fails, the Deposit Accounts at Union Bank are insured up to the $100,000 or $250,000 limit, or such other limit, as applicable, for principal and interest accrued on the day Union Bank is closed. Neither UnionBanc Investment Services nor NFS is responsible for any insured or uninsured portion of the Deposit Accounts. You are responsible for monitoring the total amount of deposits that you have with Union Bank in order to determine the extent of deposit insurance coverage available to you. Depending on the amount of deposits that you have at Union Bank apart from the Deposit Accounts, you may wish to contact your Financial Advisor to discuss other investment options. Under certain circumstances, if you become the owner of deposits at Union Bank because another depositor dies, beginning six months after the death of the depositor the FDIC will aggregate those deposits for purposes of the $100,000 or $250,000 limit or such other applicable limit, as applicable, with any other deposits that you own in the same insurable capacity at Union Bank. Subject to BDSP limitations, examples of accounts that may be subject to this FDIC policy include joint accounts, and certain trust accounts including transfer upon or payable upon death accounts. The FDIC provides the sixmonth grace period to permit you to restructure your deposits to obtain the maximum amount of deposit insurance for which you are eligible. 2 The information contained in this section regarding FDIC deposit insurance and the applicable limits are subject to the limitations described throughout this document and as specifically noted in the section entitled BDSP Limitations under Section II. B. How the BDSP Works of this document. 18

19 In the event that federal deposit insurance payments become necessary, payments of principal plus unpaid and accrued interest will be made to you through NFS. There is no specific time period during which the FDIC must make insurance payments available. Furthermore, you may be required to provide certain documentation to the FDIC and NFS before insurance payments are made. For example, if you hold deposits as trustee or in other fiduciary capacities for beneficiaries, you may be required to furnish affidavits and provide indemnities regarding an insurance payment. If your Deposit Accounts or other deposits at Union Bank are assumed by another depository institution pursuant to a merger or consolidation, such deposits will continue to be separately insured from the deposits that you might have established with the acquiror until (i) the maturity date of the certificates of deposit or other time deposits which were assumed, or (ii) with respect to deposits which are not time deposits, the expiration of a six month period from the date of the acquisition. Thereafter, any assumed deposits will be aggregated with your existing deposits with the acquiror held in the same capacity for purposes of federal deposit insurance. Any deposit opened at the acquiror after the acquisition will be aggregated with deposits established with the acquiror for purposes of federal deposit insurance. The application of a $100,000 federal deposit insurance limitation is illustrated by several common factual situations discussed below. B. Information on Deposit Insurance for Specific Types of Accounts Individual Customer and Agency Accounts. Funds owned by an individual and held in an account in the name of the individual or an agent or nominee of such individual (such as the Deposit Accounts held through NFS) are not treated as owned by the agent or nominee, but are added to other deposits of such individual held in the same capacity (including funds held in a sole proprietorship) and are insured up to $100,000 in the aggregate. Please refer to the BDSP Limitations section within Section II.B How the BDSP Works for BDSP specific limitations. Custodial Accounts. Funds in accounts held by a custodian (for example, under the Uniform Gifts to Minors Act or the Uniform Transfers to Minors Act) are not treated as owned by the custodian, but are added to other deposits of the minor or other beneficiary held in the same insurable capacity and are insured up to $100,000 in the aggregate. Please refer to the BDSP Limitations section within Section II.B How the BDSP Works for BDSP specific limitations. Joint Accounts. An individual s interest in funds in all qualified accounts held under any form of joint ownership valid under applicable state law may be insured up to $100,000 in the aggregate, separately and in addition to the $100,000 allowed on other deposits individually owned by any of the co-owners of such accounts (hereinafter referred to as a Joint Account ). For example, a Joint Account owned by two persons would be eligible for insurance coverage of up to $200,000 ($100,000 for each person), subject to aggregation with each owner s interests in other Joint Accounts at the same depository institution. Joint Accounts will be qualified and insured separately from individually owned accounts only if each of the co-owners is an individual person and has a right of withdrawal on the same basis as the other co-owners. Nonqualified joint accounts are not insured separately and are added to individual accounts for the purposes of the individual maximum coverage of $100,000 in the aggregate at the Program Bank. Please refer to the BDSP Limitations section within Section II.B How the BDSP Works for BDSP specific limitations. Irrevocable Trust Accounts. Funds in an account established pursuant to one or more irrevocable trust agreements created by the same grantor (as determined under applicable state law) will be insured for up to $100,000 for the interest of each beneficiary provided that the beneficiary s interest in the account is non-contingent (i.e., capable of determination without evaluation of contingencies). The deposit insurance 19

20 of each beneficiary s interest is separate from the coverage provided for other accounts maintained by the beneficiary, the grantor, the trustee or other beneficiaries. The interest of a beneficiary in irrevocable trust accounts at a depository institution created by the same grantor will be aggregated and insured up to $100,000. Please refer to the BDSP Limitations section within Section II.B How the BDSP Works for BDSP specific limitations. Revocable Trust Accounts. Revocable trusts include informal revocable trust accounts where the owner has designated the names of beneficiaries to whom the funds in the account will pass upon the owner s death (referred to as transfer upon or payable on death accounts) and formal revocable trusts usually established for estate planning purposes (referred to as living or family trusts). Revocable trusts will be insured as to each named beneficiary separately from another account of the owner or the beneficiary provided (i) the beneficiaries are natural persons and (ii) NFS account records disclose the names of all trust beneficiaries. For each trust owner with combined revocable trust account deposits of $1.25 million or less at a bank the maximum coverage will be determined by multiplying the number of different beneficiaries by $250,000. If an owner has in excess of combined revocable trust account deposits of $1,250,000 at the Program Bank and has named more than five beneficiaries there is a limitation on the maximum coverage. Please refer to the BDSP Limitations section within Section II.B How the BDSP Works for BDSP specific limitations. Individual Retirement Accounts. Individual retirement accounts as described in the Internal Revenue Code Sections 408(a) and 408A are insured up to $250,000 per depositor. Each person s deposits in selfdirected retirement accounts at the same bank are added together and insured up to $250,000, separately from any retirement accounts that are not self-directed and any non-retirement accounts. Please refer to the BDSP Limitations section within Section II.B How the BDSP Works for BDSP specific limitations. C. Questions about FDIC Deposit Insurance Coverage If you have questions about basic FDIC insurance coverage, please contact your Financial Advisor. You may wish to seek advice from your own attorney concerning FDIC insurance coverage of deposits held in more than one capacity. You may also obtain information by contacting the FDIC, Division of Supervision and Consumer Protection, by letter (550 17th Street, N.W., Washington, D.C ), by phone ( , (TDD), by (dcainternet@fdic.gov), or by accessing the FDIC website at D. SIPC Coverage Your cash balance is only eligible for FDIC insurance once it becomes a BDSP Deposit held by Union Bank. Your cash balance while held in your Brokerage Account (as opposed to at Union Bank in the Deposit Accounts) by NFS and/or UnionBanc Investment Services is not FDIC insured, but is covered by SIPC. This includes amounts in the cash balances placed in your Brokerage Account that have not yet been received by Union Bank or which have been swept from Union Bank back to your Brokerage Account. SIPC currently protects these funds and securities up to $500,000, including $100,000 for claims for cash. SIPC coverage does not cover fluctuations in the market value of your investments. Any securities held in your Brokerage Account (as opposed to the BDSP Deposit held by Union Bank) are investment products, and as such: (i) are not insured by the FDIC; (ii) carry no bank or government guarantees; and (iii) are subject to investment risk, including loss of principal amount invested. If, due to BDSP limitations, your cash balance is placed into a core account investment vehicle other than the BDSP, your cash deposits will not be eligible for FDIC insurance, but may be protected by SIPC in accordance with applicable legal requirements and limitations. 20